WSJ: NY regulator to halt Ocwen-Wells Fargo Deal

|By:, SA News Editor

Ocwen Financial (OCN -9.5%) sinks after WSJ reports New York financial services superintendent Ben Lawsky has halted indefinitely the $2.7B deal to purchase mortgage servicing rights from Wells Fargo (WFC +0.2%) due to concerns over Ocwen's ability to handle more loans.

The deal, announced last month, would have given OCN the right to service ~$39B worth of loans.

Other mortgages servicers are dropping too: NSM -3.9%, WAC -3.6%.